GOVERMENT-SECTION_POD12/13_DRAFT1

Edition 2012/13 041Port of Durban

GOVERNMENT

G

042 - Q&ACEO, Transnet National Ports Authority

044 | 045 - ProfileSouth African Maritime Safety Authority

047 | 049 - ReportPiracy threatens SADC economy and lives

050 - BriefingsMaritime transformationBudget speech raise concernShipping sector probe

Port City PublicationsPort of Durban042

GGOVERNMENTQ&A, Tau Morwe

According to Tau Morwe, Chief Executive of Transnet National Ports Authority (TNPA), the capital investment will see the expan-sion of rail, port and pipeline infrastructure in an effort to meet the growing demands of the nation. But apart from that, what is the value of this strategy and what are the chal-lenges? Morwe explains. How would you describe Transnet’s infra-structure investment?If you talk of Transnet as a whole, the total investment is around ZAR300 billion in infrastructure. Of this, port terminals will see ZAR33 billion in investment, the TNPA will see ZAR47 billion and ZAR200 billion will be invested in freight rail.

Initially in the 2012/2013-cycle, the capital will be for replacement but from 2014 onwards it will focus on creating new capacity.

What are benefits for South Africa as a global competitor?In terms of benefits, we will see South Africa exporting more coal and iron ore, making us top exporters in that regard.

We are looking at the pricing strategy, so that in the future people are able to export manufactured goods at a much more com-petitive rate than now.

And of course, there will be increased job opportunities, with 15.000 direct jobs in Transnet envisaged as a result of the development and 368.000 jobs linked to Transnet’s operations.

We are working closely with government on strategic initiative projects to grow the economy.

How do these plans relate to the demands the markets will be placing on South Africa’s logistics infrastructure?We worked closely with the University of Stellenbosch when it came to working out the demand and the factors relating to it. Our strategy therefore is aimed at creating the capability and capacity to handle that demand.

How much investment has been funnelled into this sector since 2005?We have spent about ZAR100 billion in infrastructure investment over the last seven years, so going forward we are doubling or tripling what we used to spend.

How will these investments be funded? Given that the demand strategy has only recently been launched, we are beginning to see interest from relevant stakeholders.

Our model is a combination of many funding mechanisms. ZAR200 billion will be funded internally, and for the rest, Transnet will look at private partnerships, and other private funding in terms of that market.

What are the potential impediments to the success?We need to have the right skills and people, and we need to invest in training. If we do not have the skills then I don’t think we will be able to deliver on the strategy.

There are other minor challenges such as possible delays from environmental issues and so forth.

But we are confident that we will be able to achieve what we have outlined in the document. We will create the capability, hire the right people and train those that require training.

PREFACEWith its Market Demand Strategy, Transnet plans to plough ZAR300 billion into various infrastructure development initiatives. These will transform South Africa and our trans-port system fundamentally.

VALUE STRUCTURE

WRITERBianca Wright


GOVERNMENT

G

Tau Morwe, Q&A

Investing in infrastructure requires investing in people...


GGOVERNMENTProfile, South African Maritime Safety Authority

The South African Maritime Safety Authority (SAMSA) was established under the SAMSA Act 5 of 1998. It is the authority charged with the promotion of South Africa’s maritime interests even though South Africa has many maritime interests that cut across many ministerial and departmental jurisdictions. It falls under the ambit of the Department of Transport.

These interests, rights and obligations are covered under international conventions to which South Africa is party, such as the United Nations Convention on the Law of the Seas (UNCLOS), the Safety of Life at Sea (SOLAS) and other maritime related conventions, which SAMSA must protect and promote. These international conventions are administered by the International Maritime Organisation (IMO) which is SAMSA’s major international stakeholder.

SAMSA was established on 1 April 1998.Its formation resulted from the 1996 Transport Policy with the vision that South Africa’s Transport must support government strategies for economic and social development whilst being environ-mentally and economically sustainable.

The articulation of the maritime policy imperatives and goals are as follows:

• Developing maritime awareness;• Assisting in the creation and fostering

of an economic environment for the Maritime Transport Industry which will allow it to compete with other nations;

• Contributing to the release of the full potential of the maritime industry in South Africa and to the modernisation of the shipping administration; and

• Ensuring fair labour practices such as employee rights, job creation and security with acceptable standards of employee health, welfare and safety in the maritime industry.

As a result of articulations in the Transport Policy, the

founding legislation of SAMSA identified three core

mandate of the entity as:

1. To ensure safety of life and property at sea

2. To prevent and combat pollution from ships in the

marine environment

3. To promote South Africa’s maritime interests

Pretoria - Headquarters161 Lynnwood Rd cnr Duncan StreetBrooklyn 0181PO Box 13186 Hatfield 0028

Offices at PortsRichards BayDurbanEast London Ngqura Port ElizabethMossel BayCape TownSaldanhaPort Nolloth

T. +27 (0)12 366 2600F. +27 (0)12 366 2601W. ww.samsa.org.za

THE SOUTH AFRICAN MARITIME SAFETY AUTHORITY


GOVERNMENT

G

South African Maritime Safety Authority, Profile

SAMSA’s local customers cut across a couple of industries, with the government being the major stakeholder. These customers divide into four categories:

Government and Public EntitiesThis includes the Department of Transport (DOT) as a major stakeholder. There are other institutions and state agencies such as Transnet and Petro SA. SAMSA also has important relationships with regional bodies such as the SADC and the Indian ocean commission.

Maritime Industry and ClientsThese include the South African Maritime economy, the Maritime industry and coastal communities.

Academic InstitutionsSAMSA has partnerships with research and academic institutions and other professional bodies.

SAMSA StaffSAMSA continues to make significant investments in it’s human capital.

SAMSA’s operations are structured by way of centres (divisions) which deliver through the following service clusters:

Corporate Governance and Institutional Positioning clusterIn this cluster we have the Centre for Corporate strategy, Risk and Governance, the Centre for Corporate Affairs and the Centre for Corporate Services.

Maritime Sector GovernanceThis cluster consists of the Centre for Policy and Regulatory Affairs and the Centre for Sea Watch and Response.

Maritime Sector Compliance and EnforcementThis cluster houses the Centre for Ships, the Centre for Seafarers and Fishing and the Centre for Boating.

Maritime Sector DevelopmentThere are two centres in this cluster: the Centre for Maritime Industry Development and Economic Analysis, and the Centre for Maritime Excellence.

SAMSA is governed by a Board made up of the CEO and six non-executive directors, including a chairperson and a deputy chairperson.

SAMSA’s CEO since 2008 is Commander Tsietsi Mokhele who has spent most of his career in the maritime environment. He started his career in the navy and Transnet National Ports Authority before joining SAMSA.

Tsietsi MokheleSAMSA CEO

Other mandates recently entrusted into SAMSA are:

1. The lead executing and implementing agency of

the Western Indian Ocean Marine Highway Project.

The project’s development objective is to introduce

modern aids to navigation systems in the SADC

region, such as an electronically supported marine

highway to guide ships through sensitive areas.

2. The Authority charged with administering the

Merchant Shipping (National Small Vessel Safety)

Regulations, 2007 as amended (“the Regulations”).

The Regulations extends SAMSA core mandate

to include inland waterways (only waterways

accessible to the public) within the Republic. That is

ensuring boating safety on our waters.

3. The Authority charged with implementing and

executing the Long Range Identification and

Tracking of Ships (LRIT) along the South African

Coastline. The long-range vessel monitoring system

assists in securing South Africa’s coastal waters in

the midst of the rising lawlessness in the high seas

with particular reference the worrying surge in

pirate attacks along the East African Coast.


GOVERNMENT

G

Piracy threatens SADC economy & lives, Report

No longer a mythical or far-off problem, piracy along the African coastline has become significant enough for the South African navy to take an active role in coun-tering the threats its poses.

The International Chamber of Commerce International Maritime Bureau annual report 2011 stated that in the decade to 2007, only 23% of global piracy attacks happened along the African coastline. By 2008 this figure had risen to 60% and in 2011 the region accounted for 67% of piracy attacks - or 293 of the 439 reported incidents.

Significantly, 237 of the African attacks were attributed to Somali pirates and effec-tive June 2012, those pirates held hostage 12 vessels and 178 people.

Legally piracy can only occur on the high seas or outside any state jurisdiction and thus cannot happen in ports, harbours or

PREFACENavy Chief maritime strategy director, Bernard Hein Teuteberg, acknowl-edges the problems of Piracy. Plans to put safety measures in place being worked on together with SADC and Government to safeguard sea routes.

PIRACY THREATENS SADC ECONOMY AND LIVES

WRITERNicola Jenvey

territorial waters - making prosecution a lo-gistical and legal nightmare.

Harsh coastlineUniversity of South Africa associate profes-sor Department of Criminology and Security Science Henri Fouché said South Africa has a harsh coastline that offers no safe harbours for pirates. South Africa, he noted, also ben-efited from strong law enforcement and an efficient criminal justice system.

However, this did not preclude our coun-try from entering into the fray in fighting African piracy. In March 2012, the South Af-rican navy chief maritime strategy director Bernhard Hein Teuteberg said the navy was prepared to deal with the threat of piracy moving south towards South Africa.

According to him, fighting pirates should be a collective Southern African Develop-ment Community (SADC) security issue. In this light, he proposed a maritime zone and regional maritime domain zone centres to jointly exchange information.

His ideas have resonated and since April, information relating to vessels mov-ing around South Africa is being collated in centralised systems as a means for sharing information.

Operation CopperTeuteberg added that formalised diplomatic ties between Somalia and South Africa also assist anti-piracy efforts.

ILLUSTRATIONSacm + Daniel Ting Chong


GGOVERNMENTReport, Piracy threatens SADC economy & lives

[email protected] | www.subtech.co.za

commercial divers & marine specialists since 1995

Subtech is approved by the following classification societies:

where experiencemeets innovation

The Subtech Group, in operation since 1995, specialises in the provision of world class marine services throughout Sub-Saharan Africa. We are based in Durban with offices in Cape Town, Namibia, Mozambique and Mauritius and have ISO 9001:2008 certification as well as full membership with the International Maritime Contractor’s Association (IMCA). Subtech has a wealth of invaluable industry experience which, together with our extensive geographical spread and range of services, enables us to offer our clients a comprehensive service package.

In the words of our clients, the Subtech Group is “intelligent, innovative, willing and fast.” These are the qualities that have ensured long term relationships with our customers.

Our comprehensive services cover all aspects of diving and marine related requirements, both above and below water, within the following divisions:

head officeDurban - South Africa+27 (0) 31 206 2073+27 82 619 0113 (24 Hr)

Cape Town - South Africa+27 (0) 21 506 4940+27 82 493 3375 (24 Hr)

Namibia+264 (0) 64 220 297+264 (0) 8114 69555 (24 Hr)

Mozambiquetel: +258 84 7199 780+258 84 3072 990 (24 Hr)

Mauritiustel: +230 (0) 217 5100+264 81 1459 555 (24 Hr)

Mozambique, Tanzania and South Africa have worked together since 2011 to safe-guard the Mozambique Channel from pirates. Operation Copper deploys a frigate and helicopter, special forces, and a mari-time squad with Mozambique providing a naval base in Pemba and 12 inland control vessels to protect the lagoon and area around the base.

Three Tanzanian vessels in the mean-time patrol the inshore areas around Dar es Salaam and between Mozambique and Tanzania, while beaches in hot spots are patrolled on foot. Local communities are urged to report suspicious activity.

Two months after Teuteberg’s com-ments, South African High Commissioner Zola Skweyiya signed a code of conduct con-cerning the repression of piracy and armed robbery against ships in the western Indian Ocean and the Gulf of Aden on the country’s behalf. This made South Africa the 19th signatory to The Code, established by the

International Maritime Organisation (IMO) to develop regional capacity in countering piracy.

Pirates moving southwardsThe IMO is the United Nations specialised agency responsible for the safety and secu-rity of shipping, and the prevention of ma-rine pollution by ships. Among other things, code signatories promise to conduct shared operations in law enforcement and to share information.

The move following Teuteberg’s com-ments was strengthened by government commitment expressed by International Relations and Co-operation Minister Maite Nkoane-Mashabane. She said that South Africa would enhance co-operation with SADC neighbours along the Indian Ocean shoreline, specifically Mauritius, Seychelles and Somalia, to safeguard the sea routes from piracy.

Former Defence Minister Lindiwe Sisulu also admitted that Southern African waters were increasingly becoming an attractive alterna-tive to Somali pirates ‘as they try to avoid the clamp-down of various maritime task forces around the Horn of Africa and the Gulf of Aden - purely by moving into the largely un-protected parts of the Indian Ocean.’

Six million tons of oilUnderpinning the political issues in curbing piracy are challenges of a financial nature. Attacks off the Tanzanian coast and northern Madagascar have implications on global energy supplies: more than six million tons of crude oil are transported around South Africa’s western coastline monthly. The gas fields off Mozambique and Tanzania are also vulnerable to growing inci-dents of piracy.

Other sectors of the African regional economy are, directly and indirectly, being threatened too. One of piracy’s numerous


GOVERNMENT

G

FTW0016SP

effects is that shipping lines are already re-routing trade lines. The knock-on effect may be increasing costs of transporting goods, which could translate into higher prices paid by consumers.

On another level, Fouché estimated the Seychelles economy was losing US$6 million (ZAR50.3 million) annually from its fishing and tourism industries and Kenya US$414 million (ZAR3.47 billion) in trade.

Essentially, the government’s actions - rather than just words decrying the escala-tion in piracy along the east African coast-line - reflect the extent to which there is commitment to preventing the scourge from drifting southwards and affecting the local economy like it has already done to those in the piracy pathway.

Success story

In April 2012 the South African navy played a key role in a multinational operation that saw 12 suspected pirates captured and six Sri Lankan hostages rescued off the Tanza-nian coast.

The SAS Drakensberg, equipped for anti-piracy operations and at the time patrolling the Mozambique Channel, was assisting the French navy when the pirates were spot-ted. The earlier search-and-rescue mission for a missing South African yacht shifted to a piracy interdiction operation involving the SAS Drakensberg, the Tanzanian navy, and the European naval units operating off Somalia.

A navy statement issued after the inci-dent said the successful operation ‘sent out a clear message that the South African Na-tional Defence Force, as part of SADC will not allow illegal activities within the SADC waters’.

‘It is also clear the tripartite agreement be-tween South Africa, Mozambique and Tanza-nia and the subsequent deployment of SADC forces to safeguard our sea lanes is paying dividends in ensuring the safety of our sea-farers and their precious cargoes,’ the state-ment concluded.

Piracy threatens SADC economy & lives, Report


GGOVERNMENTBriefings

SOUTH AFRICAMaritime transformation

To create a more sustainable maritime industry, the South African Maritime Safety Authority (SAMSA) has commis-sioned a study to create a coherent picture of the sector’s size, scope, challenges and investment needs.

A report by Business Day indicated that the industry has been shrinking for the past 30 years ‘in the absence of long-term plan-ning and unattractive maritime policies’.

SAMSA, the sector’s regulator, expressed concern about the return on investment in an industry that has benefited from gov-ernment investment initiatives. Challenges included lack of coherence in terms of man-date across government departments as well as legislative and regulatory hurdles.

In June 2012, SAMSA organised a confer-ence dealing with these and other issues. Representatives from a cross-section of the maritime industry, including shipping lines, fishing companies, oil and gas players attended the events, as well as service pro-viders, financiers, legal advisers and state policy makers. – (BW)

Source: i-Net Bridge / 4 June 2012

DURBANShipping sector probe

10years

30

25

20

15

10

5

20years

30years

40years

50years

Government has urged the maritime indus-try to fast track its transformation agenda, by aiming for a target of least 25% black ownership.

KwaZulu-Natal MEC for Economic Development and Tourism, Mike Mabuya-khulu, told delegates at the Umyezane Broad-Based Black Economic Empowerment Conference and Business Awards in Dur-ban, which took place in March 2012, that these targets should be reviewed regularly. He says it is important that there is a con-tinuous increment in numbers of black South Africans entering this particular sector.Mabuyakhulu pointed out that the foreign nationals dominate the industry and that

change was necessary. While some transformation has occurred

over the past 18 years, black people are largely excluded from ship ownership, ship operating, chartering, cargo surveyors, ma-rine tally and port equipment. – (BW)

Source: Skills Portal / www.skillsportal.co.za

Finance Minister Pravin Gordhan’s announce-ment that as of October 2012 a duty of 10% will apply to motorboats and sailboats longer than 10 metres was met by concerns during the 2012 Economic Outlook for the Maritime Industry.

Attendees of the seminar, hosted by the eThekwini Maritime Cluster (EMC) in part-nership with Trade and Investment KwaZulu-Natal (TIKZN), are worried about the impli-cations.

Guest Speaker Ian Anderson from Grind-rod Asset Management said: ‘This will affect the maritime industry. We are aware that this is targeted at the wealthy, however, it will impact on the customers’ affordability.’

The EMC, a section 21 company, was launched as a joint initiative between Eco-nomic Development Unit and the Maritime Industry stakeholders in 2009. It aims to support the growth of the Port of Durban and the associated maritime business com-munity, so that they function as efficient facilitators of trade that support economic growth and job creation.

Noma Sokhela from the Municipality’s Economic Development Unit said: ‘The EMC continues working with the industry and other government departments and agents in support and development of the maritime industry. As a result a Provincial Maritime Cluster will be formed by the KZN Depart-ment of Economic Development and Tour-ism.’ – (BW)

Source: http://www.durban.gov.za

SOUTH AFRICABudget speech raise concern

GOVERMENT-SECTION_POD12/13_DRAFT1

Documents

Transcript of GOVERMENT-SECTION_POD12/13_DRAFT1